Recommendation From Software & Chemicals Sectors

The scrips in this column have been recommended with a 15-day investment horizon in mind and carry high risk. Therefore, investors are advised to take into account their risk appetite before investing, as fundamentals may or may not back the recommendations

L&T TECHNOLOGY SERVICES

CMP - Rs 1682.30
BSE CODE 540115
Volume 3,610
Face Value Rs.2
Target Rs 1860
Stop loss Rs.1580 (CLS)

L&T Technology Services is an engineering research and development services company. The company is engaged in providing a range of services and related technologies in the areas of embedded systems, mechanical and others. Its segments include transportation, process engineering, industrial products, medical devices and telecom. After the fourth industrial revolution, most things are becoming connected through IoT, such as machine to machine, person to person and products with other products. This is leading to new business models for enterprises (for example, offering products as a service, with a usage-based pricing model). LTTS is the engineering partner for the autonomous vehicle programme of an European car maker with an objective to improve the accuracy and precision of machine vision and scene recognition algorithms. LTTS has secured a deal with a global pharmaceutical company for developing a mobile platform for diabetic therapy. Thus, we recommend a BUY.


UPL

CMP - Rs 946.55
BSE CODE 512070
Volume 37,829
Face Value Rs.2
Target Rs 1025
Stop loss Rs.890 (CLS)



UPL Ltd provides crop protection solutions. The company is engaged in the business of agrochemicals, industrial chemicals, chemical intermediates and specialty chemicals. The company's segments include agro activity and non-agro activity. The agro activity segment includes the manufacture and marketing of conventional agrochemical products, seeds and other agriculturerelated products. The company has recently acquired its global competitor Arysta LifeScience. UPL is positioned well to sustain its growth as a generics crop protection chemicals (CPC) company based on its domain expertise in complex synthesis and sourcing of active ingredients (AIs) or technical grades, significant presence in branded generics (85% of revenues), navigating the registration process in key target markets, and distribution and farmer extension services. Thus, we recommend a BUY.

(Closing price as of Apr 24, 2019)